All Forum Posts by: Mike Hansen

Guess it depends what your friend would like in return for his cash.

If he wants to be tied to the deal a bit, how about your friend fronts the down payment cash for a percentage of profits on property until you can pay him off?

Do you have resources to improve a property?  You could borrow his money, get something that needs work where you could purchase (with loan in your name), have enough over to improve property (maybe putting some cash in yourself), get it running and then refi and get money out to pay them off

Mike

Is this a buy and hold or flip?

Either way I'd compare to neighbors homes and pick a color that compliments their homes so neighborhood balanced. I'd go with a lighter color too so house doesn't "shrink" and look smaller

If flip, pick a color that stands out in a good way...

If buy and hold, I'd stick to standard neutral colors (Khaki, blue, etc) for ease of replacement. 

Mike

You might want to add:

"Do you own any rental properties yourselves?"

Amazing how many PMs don't.... And owning yourself helps get you in mindset and place operating rules so they treat your property like they'd treat their own

  Mike

I agree with @John Adamkewitz about cleanliness. How about this: Since your lease allows you entry into the property, give your existing tenants a heads up you'll be doing an inspection this week. Do a thorough inspection on what needs to be done to the place, and draft a plan to get it done. From there you'll have an estimate on time and materials needed, and can decide if you need to put the place up on market with the mess, or can wait to get things right so possible tenants don't have to look past the mess.

Mike

Hey Dennis --

Like Rob we use Google docs, taking "snapshot" downloads every few weeks that we keep locally (in a firebox at my house) just in case.

We keep all of the documents we use to manage properties (lease template, property walkthrough doc, key security deposit form, security deposit form, rent verification, etc.) on the drive all together in one folder so we can simply access that when we need to rent something. All of the other forms like LLC meeting minutes, property price calculators, contact lists, etc. we keep in an organized way in the drive too. Each of our properties has it own folders and sub-folders... So yes, we scan all signed and given paperwork and just keep it in the cloud too, along with the properties individual log, etc.

We looked at Quickbooks but we feel we don't do enough transactions to merit the program. We use Quicken... Measurably cheaper, easier to use, can import what you need, reporting is pretty decent, and our CPA can use it no prob.

Mike

How about these ideas:

- In terms of pics TURN ON THE LIGHTS! The windows look dark, and the roof overhang makes the front of house disappear and look dingy. Turn on inside light and porch lights to make house "look" warmer

- I agree with Kevin, frame out the pillars, paint them white

- Lighter shutters will make the windows look bigger

- I'd do flower boxes under the windows with annuals in them to soften the front and add a punch of (cheap) color.

- If you're brave... Paint the brick... I'd say a light grey (to bridge the color palate between roof and siding, and pick up some of the grey from roof).

Mike

Hi guys --

So the idea is when we have new tenants move in, also place an envelope in the neighbors mailboxes to:

1. Introduce our company

2. Introduce their new neighbors (by first names)

3. Cover if there ever are any issues with tenants or our property, that they can reach out to us

4. We include our business cards in the letter/envelope

The tenants will also know (upon moving day/walkthrough) that we sent this letter to neighbors.

Letter sent is a form letter and we'll simply add it to our "move in day" process.

We felt this would be a good way to introduce ourselves and the new tenants to the nearby neighbors. It also opens the lines of communication with neighbors in case tenants are causing problems.

Only negative we can see is we might get a neighbor that calls excessively.

What do you guys think? Did we miss any land mines?

Thanks --

Mike

Maybe you would want to structure the right of first refusal deal more as a right of first offer (ROFO)? Sounds like tenant is getting a good deal: 3 year lease, flexibility in payments. On top of that sounds like a ROFR deal encumbers you if you get a solid deal to sell. You might get a buyer who wants to move fast, has excellent credit, maybe can pay cash... Now with the ROFR you might scare them away since your tenant can match and drag things out.

If you do the ROFO you can simply entertain your tenant's offer and haggle... Before even listing the home. If it works out, great.. Sell. If not, his turn is over, onto another buyer

Mike

If you don't pay taxes in your job now, yup :)

I figure with fed taxes and fun fed hold backs (unemployment, medicare, etc.) , state taxes, and some 401k investing you bring home around 2500 monthly...

Mike

Nice DuRon - great initiative and the results are stunning! Be careful this stuff gets in your blood :)

What a great start to having your own business. Hopefully some KC folks here can share some tradespeople contacts with you :)

Mike